"This interest burden will sink the company as enumerate points out. And a half decent offer could see you with 40-50 cents worth of value in the end if BBI RECOVERS as a company"
Your Beppa is worth 40-50c if BBI recovers. My conversion at 1.78x, lets say 2x will basically do that.
If 100mil sparc conert into 1.25bil BBI, provided DBCT sells for $700mil above book vale, then existing BBI holders and sparcs holders will STILL have BBI shares with a NAV 56c.
convert beppa at 1.78x, NAV remains 56c still. convert at 2x NAV falls say to 50c.
SO essentially we can convert sparcs at face value, and BEPPA at market value(or there abouts), and still retain >50c NAV. IF BBI RECOVERS those 2xBBI will be 40-50c.
So people probable expect more than that, or expect the recovery to be quicker than its likely to be.
The NAV is not something to be given away to ANYONE. the NAV is your upside potentential. If NAV falls to 10c because we convert at >5x multiples the shares will never go above 10c and if they continue to trade at substantial discount could drop to 3 or 4c.
I see no point issuing beppa holders with 5xBBI only to see BBI fall to 4c. 5x4c=20c. Much better to give beppa 2xbbi and let the NAV work for all holders equally.
cheers
BBI Price at posting:
6.0¢ Sentiment: LT Sell Disclosure: Held
